INDEX
- Section 80CCD: Contributions to National Pension Schemes (NPS)
- Section 80D: Health Insurance Premiums and Medical Expenses
- Section 80DD: Expenses on Medical Treatment and Rehabilitation of Disabled Dependents
- Section 80DDB: Medical Expenses on
Specified Diseases - Section 80E: Interest on Education Loan
- Section 80EE: Deduction for New Home Loan Interest Payments
- Section 80G: Deduction for Donations Made to Charitable
Organizations - Section 80GG: Deduction for Rent Paid
- Section 80GGA: Donations Made Towards Scientific Research or Rural Development
- Section 80GGB: Donations Made by Indian Companies to Political Parties or Electoral Trusts
- Section 80GGC: Contributions Made by Individuals Towards Political Parties
- Section 80TTA: Deduction on the Interest Earned on
Savings Accounts - Section 80U: Deduction for Individuals with Disabilities
- Section 24(b): Deduction on Home Loan Interest
Deductions Other than Section 80C
Effective Tax Saving Options Other than Section 80C
Income Tax Exemption Limits for Different Sections
| Section | Topic | Exemption Limit |
|---|---|---|
| 80CCD | Contributions to National Pension Scheme (NPS) | Up to ₹50,000 |
| 80D | Health insurance premiums | Varies based on the taxpayer’s age and family composition |
| 80DD | Expenses on a dependent with a disability | ₹75,000 for 40%–80% disability, ₹1,25,000 for 80%+ disability |
| 80DDB | Treatment of specified illnesses | ₹40,000 (₹1,00,000 for senior citizens) |
| 80E | Education loan interest payment | No limit |
| 80EE | Home loan interest payment for first-time homebuyers | Up to ₹50,000 |
| 80G | Donations to approved charitable institutions | No limit (conditions apply) |
| 80GG | Rent paid by employees not receiving HRA | Limited to ₹5,000/month, 25% of income, or rent paid minus 10% of income |
| 80GGA | Donations for Scientific Research and Rural Development | No limit |
| 80GGB | Donations to political parties or an electoral trust | No limit |
| 80TTA | Interest on savings account | Up to ₹10,000 |
| 80TTB | Interest on senior citizen savings accounts | Up to ₹50,000 |
| 80U | Deduction for an individual with a disability | ₹75,000 (40%–80%), ₹1,25,000 (80%+ disability) |
Tax-Saving Provisions in Detail
1. Section 80CCD: Contributions to NPS
Under Section 80CCD, individuals contributing to the National Pension Scheme (NPS) can claim a deduction of ₹50,000 in addition to the ₹1.5 lakh available under Section 80C. Contributions under the Atal Pension Yojana also qualify.
2. Section 80D: Health Insurance Premiums
Taxpayers can claim deductions for premiums paid for themselves, their families, and dependent parents. The limits vary:
- ₹25,000 for individuals below 60 years.
- ₹50,000 for self (below 60 yrs) & Parents( below 60yrs).
- ₹75,000 For self (below 60 yrs.) and parents (above 60 yrs.)
- ₹100,000 For self (above 60 yrs.) and parents (above 60 yrs.)
- An additional ₹5,000 is deductible for preventive health check-ups but upto above limit.
For more details click here Sec 80D
3. Section 80DD: Expenses on Disabled Dependents
This section provides relief for expenses related to medical care, training, and rehabilitation of disabled dependents. The deduction is ₹75,000 for moderate disabilities and ₹1,25,000 for severe disabilities.
4. Section 80DDB: Treatment of Specified Illnesses
Individuals can claim deductions for medical expenses incurred for specified illnesses such as cancer or chronic renal failure. The limit is ₹40,000 for individuals below 60 and ₹1,00,000 for senior citizens.
5. Section 80U: Deduction for Individuals with Disabilities
- Deduction Amount: The deduction amount under Section 80U depends on the extent of the disability, as follows:
- Disability level 40% to 80%: ₹75,000
- Disability level 80% or more: ₹1,25,000
Section 80U of the Income Tax Act provides a tax deduction for individuals with specified disabilities (physical or mental). This section allows the individual with the disability to claim a deduction from their total income.
Key Points:
- The individual must have a certified disability of at least 40%.
- The deduction is available regardless of whether the disability is physical or mental.
- The amount of deduction varies based on the severity of the disability: ₹75,000 for a disability between 40% to 80%, and ₹1,25,000 for a disability of 80% or more.
Difference Between Section 80DD and Section 80U:
- Section 80DD allows a deduction for the medical treatment, maintenance, and rehabilitation of a dependent with a disability.
- Section 80U provides a deduction to the individual with the disability themselves, whether physical or mental.
Lesser-Known Tax-Saving Sections
1. Section 80E: Education Loan Interest
No upper limit exists for claiming a deduction on interest paid for education loans under Section 80E. However, the deduction applies for a maximum of 8 years from the start of loan repayment.
2. Section 80EE: First-Time Homebuyer Deduction
First-time homebuyers can claim an additional deduction of ₹50,000 under Section 80EE, provided the loan was sanctioned between April 1, 2016, and March 31, 2017.
3. Section 80GG: Deduction for Rent Paid
- Deduction Limit: The deduction limit under Section 80GG is the least of the following amounts:
- Rent paid minus 10% of total income
- ₹5,000 per month
- 25% of total income
Eligibility Criteria:
- The individual must not receive HRA as part of their salary.
- The property where they reside should not be owned by the taxpayer.
- The rent must be paid for residential accommodation.
This provision provides tax relief to individuals who live in rented accommodation but do not receive HRA, making it easier for them to claim deductions for rent payments.
Encouraging Contributions and Donations
1. Section 80G: Donations to Charities
Digital donations qualify for 100% deductions, while cash donations have a limit of ₹2,000 per year. Contributions must be made to government-recognized charities.
2. Section 80GGB and 80GGC: Donations to Political Parties
Indian companies and individuals can claim 100% deductions on contributions made to registered political parties or electoral trusts under Sections 80GGB and 80GGC.
3. Section 80GGA: Donations Made Towards Scientific Research or Rural Development
- Deduction Limit: The deduction limit under Section 80GGA is the total amount donated or ₹10,000, whichever is lower.
Eligibility Criteria:
- The donation must be made to a recognized institution engaged in scientific research or rural development activities.
- The deduction is available for both individuals and businesses.
- The amount eligible for deduction is limited to the actual donation made, but not exceeding ₹10,000 in total.
This provision encourages contributions towards scientific advancements and rural development, providing tax benefits for such charitable donations.
Special Provisions for Interest Income
1. Section 80TTA: Savings Account Interest
Individuals below 60 years can claim a deduction of up to ₹10,000 on interest earned from savings accounts.
2. Section 80TTB: Senior Citizen Savings Interest
Senior citizens can claim up to ₹50,000 on savings account interest under Section 80TTB, covering banks, post offices, and cooperatives.
Housing-Related Tax Reliefs
1. Section 24(b): Home Loan Interest
- Self-occupied properties: Deduction capped at ₹2 lakh.
- Rented properties: No upper limit on deduction.
Interest must be due within the financial year to qualify for the deduction.